result of testing
Those that poopood on moving averages, thoughts on this?
- Thread starter Saltynuts
- Start date
result of test
Thanks for the discussion, guys! I just finished putting the final touches on a highly successful 100%-moving-average-based-system for buying and selling foreign currency pairs that I’m going to begin testing on binary options next week thanks to a partner I have in Estonia, and your discussion here is going to be a valuable resource to me in constructing a particular section of a book I’m writing describing the principles behind my methodology—a book I can leave behind after I’m gone for anyone who is interested in how I’m getting such remarkable results so that the “magic” of the system is not lost with my death (as was the mystery behind Ed Leedskalnin’s “Coral Castle” until it was revealed via a book authored by a guy named Orval Irwin as well as the discovery of a metal shaft and truck bearing uncovered in 1986).
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i was one that pooooooooopooooooooooooooooooded 
moving averages and focused on price action, the last 10 years of my life...and what a stupid I was, because both price action and moving averages were based on the same thing price.
I am now using a moving average system but not depending on crossovers alone.There are number of other ways to use ma,including to judge momentum of a move ...etc.
i will post the results and the system here shortly in ET.
i am not saying that one is wrong-both are equally valid but i have found it easier to have a entry point defined in ma system than in the discretionary price action, most of the time making a entry before the buy signal triggers fo the PA action traders,a rather nice bonus
moving averages and focused on price action, the last 10 years of my life...and what a stupid I was, because both price action and moving averages were based on the same thing price.I am now using a moving average system but not depending on crossovers alone.There are number of other ways to use ma,including to judge momentum of a move ...etc.
i will post the results and the system here shortly in ET.
i am not saying that one is wrong-both are equally valid but i have found it easier to have a entry point defined in ma system than in the discretionary price action, most of the time making a entry before the buy signal triggers fo the PA action traders,a rather nice bonus
here is the result for test done by pepperstone trading simulator that runs the market on historical data when the market is closed ,just right for trading junkies like me on a lazy sunday afternoon when nothing else is there to do.
for more info on the trading simulator see here:
https://pepperstone.com/en/trading-platforms/trade-simulator
please see the file uploaded.
Trolls are welcome
for more info on the trading simulator see here:
https://pepperstone.com/en/trading-platforms/trade-simulator
please see the file uploaded.
Trolls are welcome
here is the result for test done by pepperstone trading simulator that runs the market on historical data when the market is closed ,just right for trading junkies like me on a lazy sunday afternoon when nothing else is there to do.
for more info on the trading simulator see here:
https://pepperstone.com/en/trading-platforms/trade-simulator
please see the file uploaded.
Trolls are welcome
Enough results, just post the system.
ok the system is simple but as is often the case the explanation is not so give me some time to put it down on paper.....in person to person it would take not more than a minute but in writing it is open to misunderstanding..so bear with me it has to be explained properly
this is a scalping technique, not a system, in the true sense because a fair bit of discretionary judgment is required to get the full benefit of the technique.
i use a 5 min but it may be used for any time frame
the first thing to see is if all the ma line up one over the other with the shortest term the highest and the 200 ma the lowest.
If the the 3 and 8 ma is very high above the 50 ma, 100 ma, 200 ma, then it shows that there is very good short term up momentum, so when the market comes down into the gap between the 3 ma and the 8 ma, you can enter long.
here it is very important that you watch how fast the recovery move out of the gap is:if it is immediate and with high momentum,it shows buyers are impatient.
if the move out of the gap is with small bars or if it waits for a bar or two, in the gap before moving out, be aware that the previous high may not be broken or even if it is broken , it may reverse quickly.
IF the move out of the gap is not immediate, then after it moves out of the gap, the market will test the 50 ma.The test down to the 50 ma should be bought only if it is a move down in high momentum, ideally in one five min bar.
here to it is critical, to see if the recovery back is rapid and immediate:if it stays near the 50 ma for more than one bar,for 2-3 or more bars,then the recovery may not be very convincing and look for it to be weak and reverse.
If at any time, after the bounce back up, from a test down, the market moves back down in a slow manner,with small bars, with retracements,then it will continue down, to new low levels.
if moves down or tests down, are rapid with big bars,the market will likely reverse,as it hits ma for the first time or from new lows.
I am using the ma as a momentum indicator and watching very very carefully how fast it recovers from tests of support to gauge the market pulse.this gives me the idea of how strong the recovery will be.
watching how fast the bars form,how big they become,where the close is,above or below the ma, how much above the ma, the close IS,all gives critical information to the trader THAT NO INDICATOR CAN.
IT GIVES IDEA OF INTERNAL MOMENTUM OF THE BAR WHILE IT IS BEING FORMED.
It gives the pulse of the market.
If, at any point, the market stalls around a moving average,for 2-3-4 small bars,then it is high probability, that the ma will be broken
i will post some charts in explanation of this in due course to make this a bit clearer.....bear with me till then
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the chart below illustrates a pull back to the 50 ma :it is a sell the minute the market touches the 50 ma for the first time.
but instead of selling off in a big down bar, as was expected, the market stalled,
near the ma for two more bars. Whenever the market does NOT do something, it is expected to do or supposed to do,it should be noted !
No surprise when it went through the ma in a big bar.
but instead of selling off in a big down bar, as was expected, the market stalled,
near the ma for two more bars. Whenever the market does NOT do something, it is expected to do or supposed to do,it should be noted !
No surprise when it went through the ma in a big bar.